BUSM1162 Motivation in The Financial Industry Assignment Sample

• Subject Code : BUSM1162
• University : RMIT University My Assignment Services is not sponsored or endorsed by this college or university.
• Subject Name : People management

People Management

Executive Summary of People Management

The key driver of the organizational issues and problem-solving is an interface of the uncertainty of the situation, poor prioritization of the actions and lack of behavioural management. This assessment is an extensive analysis of the factors that impact the motivation levels of the employees in the financial sector. To be more specific, the banking sector is considered to outline the assessment. Whether in the public or private sector, the employees must be motivated so that they can contribute in an effectual conduct to the overall organization's goals.

The key reason for which the employees must be motivated is the fact that the motivated employees perform their tasks with compassion and commitment which ultimately adds to the value of the organization. The key factors that are identified in the analysis of the issues are poor work-life balance, long working hours, and working relationships with the peers and with the supervisors, remuneration, monetary incentives, appraisals, rewards and recognition, job security and safety and the growth opportunities. The most feasible goals are underlined for working relationships and incentive provision on the basis of Maslow's hierarchy of needs. The key strategies underlined in the assessment for implementing the goals are the employment of the participative approach and use of behaviourist motivational approach.

Contents

Introduction.

1.1 Background.

Method.

Literature review..

3.1 Analysis of the key issues.

3.2 Identification of the solutions.

Discussion.

Conclusion.

References.

1. Introduction to People Management

Businesses encapsulate incessant escalation and progress which often accompanies new challenges. With the advancements in the operations and culture of the organization, the problem-solving is becoming more intricate (Mason & Harrison 2017). This is possibly because of the changing dynamics and highly interactive systems. Comprehending the organizational knowledge and taking effective managerial decisions to overcome the issues is rooted in the evolution of commerce. Behavioural complexity is basically the ability of a leader to manage the wide assortment of behaviours of the individuals within the workplace boundary (Herzberg 2017). A leader with effective behavioural complexity focuses and puts the different types of behaviours in a nutshell and tries to manage each of them.

This assessment envisages exploring the motivational aspect of people management falling under the umbrella of behavioural complexity. It is segmented into four key sections. The initial section discusses the research technique being employed in the report. It elaborates on the exploratory research design being trailed. The following section presents a critical discussion of the literary articles and an elaborative review of the same. It lays prominence on the analysis of the issues and problems as contingent from the review. It also proposes the findings and interprets the analysis. The third section lays emphasis on the valid set of recommendations that can be used to address the identified issue. A SMART goal is emphasized in the assessment. The concluding section of the report highlights the key underpinnings of the assessment.

1.1 Background of People Management

Organizational problems and problem-solving is not just limited to a particular firm but is applicable to a diverse range of industries (Bianchi et al. 2020). The problems in the organizations are usually incurred as a result of the poor integration of the motivational stratagems. Despite the conduct taken, the organizations are not able to sustain effective solutions to the problem and this is possibly because of the low employee morale and lower productivity (Kofler et al. 2020). It is also closely associated with poor commitment and motivational programs. This is usually witnessed in the finance industry especially in the banking sector. This sector deals with the handling of financial transactions. Banks are the financial institutions which are licensed with receiving and depositing of the loans. In its wide assortment of the services, safe deposit boxes, wealth management and currency exchange are involved. They are further classified as corporate banks, commercial banks, investment banks and retail banks. In this business, it becomes extremely imperative that the employees are motivated to inflate productivity and elevate satisfaction of the customers. Kumari et al. (2020) have stated that the employees in the banking sector have to work for long shifts and low salary structure. Failing to recognize the same causes the managerial team to ineffectually address the low productivity. High employee turnover is a consequence of the same. In the year 2007, the Bank of America had a high employee turnover rate which reached up to 48 per cent. The banking sector is characterized by high employee turnover rate due to many factors that majorly involve the deflated morale.

2. Method for People Management

The exploratory research design is employed in the research study. It is used to accumulate data via the secondary resources. The primary reason for using a research methodology is to authenticate and augment the integrity of the study. In this assessment, interpretivism research philosophy is implemented (Dikko 2016). The key reason for employing this philosophy is to ensure that the topic from a subjective outlook. Opting for this philosophy is relied on the fact that interpretation is a part of the scientific knowledge. This philosophy makes use of qualitative data to outline the research (Dikko 2016). The inductive approach is used in the research because it is based upon the observation of the results (Dikko 2016). The data collection method is a critical part of the research study, in this assessment; the data is collected via literary sources. For maintaining the credibility of the resources, it is made sure that the articles and journals considered are authentic and are not older than 2016. Specific keywords like the banking sector, behavioural complexity, employee motivation and leadership are used to sort the relevant data.

3. Literature Review of People Management

Motivation is a key factor that encourages the employees to go an extra mile to serve for the firm. It is a combination of several factors requiring the amalgamation of approaches and operates within each individual. Since today’s businesses are characterized by fierce competition, it is cardinal that the businesses view human resource is an integral part of the organization (Herzberg 2017). Businesses today are facing ever-growing challenges in relation to employee commitment and motivation. At this stage, it is crucial for the organizations to ensure that the effective steps are taken to tackle the poor employee productivity. According to the opinions presented by the Herzberg (2017), for maintaining the continuity of work; it is essential that the employees are encouraged and enthusiastic about work. Motivation also results in the sharpening of the skills of the employees and also results in meeting the organisational demands. Employee motivation is basically a reflection of the energy and dedication in the performance of the staff. It is also referred to as the creativity that the employees bring at the workplace and amalgamate in their allocated tasks.

3.1 Analysis of The Key Issues

Tufail et al. (2017) have stated that employees can be motivated in several ways. Provision of rewards is a key way via which it can be cultivated among the employees that if they work in an efficacious custom they will be appraised. This makes them further work hard. The motivation of the employees can be in numerous ways that involve the provision of the monetary incentives, appraisals, promotions or organizational recognition.

In research conducted by the authors AbdiMohamud et al. (2017), the impact of employee motivation is examined in the financial industry. The results of the research revealed that factors like job enrichment and monetary rewards posed a positive impact on the motivation of the employees. The research also stresses on the fact that employee motivation also significantly upsurges the performance of the employees. A positive relationship is focused on research between employee motivation and employee performance in the financial industry. It is also suggested in the research that feedbacks have a positive influence on the motivation levels of the employees as they tend to gather knowledge regarding their pitfalls and plus points which also them to further improve (Adom 2018). Research conducted by the authors Nurun Nabi and Dip TM (2017) examines the role of motivation in managing the employees and their performance in an effectual custom.

Authors investigate the issue in the banking sector. Karma sangsthan Bank Limited is considered as a major focus to determine the impact of employee motivation on performance (Nurun Nabi and Dip TM 2017). The results lay prominence on the role of maintenance of the relationships with the peers and supervisor in as a factor of job satisfaction. Results stress that the employees due to having poor inter-personal working relationships with the peers and the supervisors had low morale and motivation. It is integral for the employers in the banking sector to ensure that the working culture is enhanced so that the motivation is inflated. Another key factor identified in the research study is job safety. Employees feel that poor safety of the job is also the reason that they wish to quit the jobs. Hence, it is another factor that is connected with the motivation of the employees.

Authors have stressed in the research study that the growth opportunity and the prospect to take decisions are some of the other determinants that are responsible for the motivation of the employees (Nurun Nabi & Dip TM 2017). Authors Ahmed and Shabbir (2017) have laid prominence on the deflated levels of motivation among the employees as a result of the long working hours and litheness of the shift timings. Poor work-life balance is a key reason that often results in the demotivation of the employees in the banking sector. It often causes them leaving the organization resulting in the high employee turnover. This also causes havoc in the management system and results in poor decision-making among the employees. Job satisfaction is closely associated with the work-life balance which directly impacts the employee performance.

As per the opinions presented by the authors Akhtar et al. (2018), stress at the banks is a key reason that the employees are unable to maintain optimum levels of performance. This is directly reflected in the overall performance of the employees and also the satisfaction of the customers. Maslow’s hierarchy of need can be taken into consideration to relate motivation with basic needs. It states that the fulfilment of the basic needs of the employees results in inflation in the motivation (Velmurugan & Sankar 2017). Job security, fair appraisals, virtuous work-life balance and the standard working hours are some of the key factors that result in the motivation of the employees in the banking sector. Murugan and Pandian (2020) have studied the factors that influence the quality of work done by the employees as the banks. It was revealed that the key factors that impact the quality of the work-life are sympathetic leadership and structures, remuneration, work atmosphere and work-life balance and opportunities for personal growth. Laying prominence on these factors can also be beneficial in ensuring that staff retention is sustained.

3.2 Identification of The Solutions

It can be inferred from the above-depicted analysis that the key factors that influence the working of the employees in the banking sector are related to motivation. These factors encompass poor work-life balance, long working hours, and working relationships with the peers and with the supervisors, remuneration, monetary incentives, appraisals, rewards and recognition, job security and safety and the growth opportunities. From the literature, it is evident that the consistent patterns of these factors are highlighted and are strong determinants in influencing the motivation levels of the employees in the banks. The key solutions that can be proposed for addressing these factors using Maslow's hierarchy of needs as it is the most relevant approach to the elevation of motivation. Following are the key ways that can be incorporated:

Table 1: SMART goals

4. Discussion on People Management

The proposed SMART goals are to deal with the issues in the financial industry that impact the motivation levels of the employees. Though the entire proposed goals are viable and relevant to the working condition of the employees in the banking sector, there is an urgent need to deal with the poor working relationships of the employees with the peers and also there is a requirement of the provision of the incentives and rewards. These two are the most crucial as they fall under the basic needs of the employees as per the Maslow’s hierarchy (Nurun Nabi & Dip TM 2017). The SMART goals for both the factors as proposed in the previous section will be conducted over a range of eight weeks to assess their progress and results. The key learning from the analysis involves that there is a need to tap the significant motivational challenges in the banking sector by laying prominence on the basic needs. The key needs identified from the analysis are incentives and appraisals and working relationships in the firm.

The behaviouristic approach can be used for the implementation of the proposed methods in the banks in compliance with the type of bank. This approach amalgamated the external goals and the internal drives for accomplishing a pre-defined objective (Westera 2019). For implementing these goals, it is crucial that the intrinsic motivation is elevated and participative approach is used by the senior management of the banks and involves the employees in decision-making so that the feeling of being valued is cultivated among them. The managers can initially implement it at the mid-term with proper planning of the resources and relying upon the level of success, can be further extended or amended.

Table 2: Gantt chart for goals

5. Conclusion on People Management

Motivation is a multiplicative function of action and purpose. Motivation encapsulates the provision of the right direction to the employees and providing with the necessary rewards and recognition (Herzberg 2017). It also undertakes the provision of the required resources to them. The problems in the organizations are usually incurred as a result of the poor integration of the motivational stratagems. It is contingent from the above-depicted analysis that the key factors that influence working of the employees in the banking sector poor work-life balance, long working hours, and working relationships with the peers and with the supervisors, remuneration, monetary incentives, appraisals, rewards and recognition, job security and safety and the growth opportunities. The most viable goals are for working relationships and incentive provision on the basis of Maslow's hierarchy of needs. The assessment also highlights the participative approach by the managerial team and adoption of behaviourist motivational approach can be beneficial in the implementation of the proposed goals. 

References for People Management

AbdiMohamud, S., Ibrahim, A.A. & Hussein, J.M., 2017. The effect of motivation on employee performance: Case study in Hormuud company in Mogadishu Somalia. International Journal of Development Research, 9,11 pp.17009-17016.

Adom, A.Y., 2018. The role of commission-based pay on employee retention in the Ghanaian banking industry: The case of GCB Bank Limited. Africa’s Public Service Delivery and Performance Review, 6,1 pp.1-5.

Ahmed, I., & Shabbir, S. 2017. The Effects of Rewards on Employee’s Performance in Banks: A Study of Three Districts (Lodhran, Vehari, Khanewal) Commercial Banks in Pakistan. International Review of Management and Business Research, 6,1 pp.352-361.

Akhtar, A., Naheed, K., Akhtar, S. & Farooq, U., 2018. Impact of Job Stress on Employees' Job Satisfaction: An Empirical Study of Private Banksof Pakistan. Pakistan Journal of Social Sciences (PJSS), 38,1.

Bianchi, R., Mayor, E., Schonfeld, I.S. & Laurent, E., 2018. Burnout and depressive symptoms are not primarily linked to perceived organizational problems. Psychology, health & medicine, 23,9 pp.1094-1105.

Dikko, M., 2016. Establishing Construct Validity & Reliability: Pilot Testing of a Qualitative Interview for Research in Takaful (Islamic Insurance). Qualitative Report, 21,3.

Herzberg, F., 2017. Motivation to work. London: Routledge.

Kofler, M.J., Sarver, D.E., Harmon, S.L., Moltisanti, A., Aduen, P.A., Soto, E.F. & Ferretti, N., 2018. Working memory and organizational skills problems in ADHD. Journal of Child Psychology and Psychiatry, 59,1 pp.57-67.

Kumari, K.W.S.N., Jayasinghe, G.J.M.S.R. & Sampath, J.K.H., 2020. Employee Motivation Factors in Banking Sector: A Study on Qualitative and Quantitative Analysis. Journal of Social and Political Sciences, 3,1.

Mason, C. & Harrison, R., 2017. Informal venture capital and the financing of emerging growth businesses. The Blackwell handbook of entrepreneurship, pp.221-239.

Murugan, S. P., & Pandian, V. A. 2020. Factors influencing the quality of work life in the indian banking industry–an empirical study. Sustainability, Transformation, Development In Business And Management, p.194.

Nurun Nabi, I.M. and Dip TM, H.A., 2017. Impact of motivation on employee performances: a case study of Karmasangsthan bank Limited, Bangladesh. Arabian J Bus Manag Review, 7,293, p.2.

Tufail, M.S., Bashir, M. and Shoukat, N., 2017. Impact of job design on employee’s organizational citizenship behavior and counterproductive work behavior in the banking sector of Faisalabad. City University Research Journal, 2017, pp.225-235.

Velmurugan, T.A. and Sankar, J.G., 2017. A comparative study on motivation theory with Maslow’s hierarchy theory and two factor theory in organization. Indo-Iranian Journal of Scientific Research, 1,1 pp.204-208.

Westera, W., 2019. Why and how serious games can become far more effective: Accommodating productive learning experiences, learner motivation and the monitoring of learning gains. Journal of Educational Technology & Society, 22,1 pp.59-69.

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